Pac-12 announces 2018-19 financial results
Consolidated revenue reported at $530M with total distributions at $387M, increases of 7% and 9% year-on-year
Six-year period since start of ESPN and Fox partnerships and launch of Pac-12 Networks marked by 70% growth in member distributions and 59% growth in revenues
Conference expenses decrease 6% year-on-year
SAN FRANCISCO – The Pac-12 Conference today reported the financial performance for the financial year 2018-2019, highlighted by total revenues of $530M and distributions at $387M, representing an average of $32.2M per member university. The year-on-year increase in reported revenues and distributions, at 7% and 9% respectively, is primarily a result of increases in media rights and post-season Bowl revenues. The equity value of the Pac-12’s full ownership of its Pac-12 Networks is not included in reported results.
For the six-year period since 2012-2013 when the Pac-12 began its media rights agreements with ESPN and Fox and launched the first and only member-owned conference network, annual member distributions have increased by 70% ($228M to $387M) and annual total revenues have increased by 59% ($334M to $530M). The compounded annual growth rate for member distributions and total revenues over the six-year period was 9% and 8%, respectively. The ESPN and Fox partnerships that began in 2012 resulted in more than four times the annual revenue of the prior Pac-12 media rights agreements.
In addition to reporting consolidated results and in order to provide enhanced clarity and transparency, the Pac-12 is providing a breakout of each of Conference and Networks performance (see chart set forth below). For 2018-2019, the Pac-12 Conference reported revenues of $407M and net operating expenses of $42M. For 2018-2019, the Pac-12 Networks reported revenues of $123M and net operating expenses of $90M. Consolidated expenses for the Conference and Networks together decreased by 6% year-on-year.
“The Pac-12 continues to be focused on supporting our 7,000 student-athletes through the academic and athletic missions of our member universities,” said Pac-12 Commissioner Larry Scott. “Our continued financial growth, media strategy under which all of our rights will be brought to market in 2024, and expense management efforts, will enable us to best support this mission.”
“The Pac-12 CEO Group is committed to continuing to serve our student-athletes and educational mission through these challenging times,” said Michael Schill, Chair of the Pac-12 CEO Group and President of the University of Oregon. “We are working closely with Commissioner Scott to explore all options for the successful launch of athletics in the coming school year provided that we can do so in a safe and prudent manner.”
Pac-12 Networks is the only conference network wholly-owned and controlled by its university members, providing an unprecedented platform to showcase the full breadth of Pac-12 sports to fans nationally across linear, digital and social media platforms. The ownership model, under which the universities retain full equity in the enterprise, also provides a platform for innovation and the flexibility to adapt to and achieve full value from a rapidly evolving media landscape. Revenue and expenses, but not equity value, from the Pac-12 Networks are included in the Conference’s reported financial results.
Pac-12 Conference 990 Reporting by Entity (Audited Financial Statements)
- Certain allocations of expenses are made between Conference and Networks budgets to account for shared services and facilities, as well as for certain limited personnel roles that have responsibilities across both Conference and Networks.
- “Other” Networks expenses include talent, research, temporary and freelance labor and consulting; and “Other” Conference expenses includes temporary labor, consulting and special projects.
- “All Other Expenses” primarily includes taxes, sales expense, equipment supplies and maintenance, and officiating.
About the Pac-12 Conference
The Conference has a tradition as the “Conference of Champions,” leading the nation in NCAA Championships in 54 of the last 60 years, with 529 NCAA team titles overall. The Conference comprises 12 leading U.S. universities - the University of Arizona, Arizona State University, the University of California, Berkeley, the University of California at Los Angeles (UCLA), the University of Colorado, the University of Oregon, Oregon State University, Stanford University, the University of Southern California, the University of Utah, the University of Washington and Washington State University. For more information on the Conference’s programs, member institutions, and Commissioner Larry Scott, go to Pac-12.com/conference.